PSE stock performance in 2010

Philippine stocks rallied again in 2010, with the Philippine Stock Exchange index (PSEi) closing at 4,201.14 during the last trading day on December 30, 2010 — up 37.6% from the closing index in 2009.

This means that a P100,000 stock investment at the start of 2010 is already worth P137,600 by the end of the year.

According to the PSE, the market capitalization of all publicly-listed companies in 2010 totaled P8.87 trillion, an increase of 47.1% from the 2009 market capitalization of P6.03.

And yet this performance is just half of the stunning 63.0% return of the Philippine stock market in 2009.

Graph: PSEi performance, 2006-2010

The “PSEi 5-Year Returns” graph shows that investing in equities or stocks really pays a lot in the long-term.

If you  invested P100,000 in the PSE index five years ago — without making any withdrawals or additional investments — at the end of 2010, this amount has ballooned to P222,661.

Very good returns, huh? This actually translates to a compounded annual growth rate (CAGR) of 17.36% per year during the past 5 years.

But take note: high return equals high risk. Don’t be blinded by the spectacular performance of stocks because with great returns come a greater possibility of loss.

Still, if you’re looking to invest in stocks this 2011, start by reading our article How to trade stocks in the Philippines.

If you want to learn more about stocks, head over to our Stocks and Stock Trading Guide.

If you are already in the market, join the PMT Forum Stock Trading Discussion Board to meet other Filipino stock traders and investors.

5 thoughts on “PSE stock performance in 2010”

  1. Hi James,

    At bagsak naman kahapon ng 89% ang index! haha Sa Bangladesh nga literal na madugo, bumagsak lang ng 9.25% nagrally na sila at nag amok. Ang stock market ay parang babae lang yan, hindi mo alam kung kelan ang sumpong. hehe But you can monitor and track patterns of the behavior through charts.

    Maganda talaga mag-invest sa stock market, pero kelangan you need to determine the following:

    1. Risk Appetite
    2. Money Willing to Invest
    3. Research.Research.Research.

  2. Is there enough gold in the Philippines? Gold have been all time favorite as mode of investment .Stock prices fall and rise sharply but that doesn’t happens in case of gold. I’ve seen PSE grew high recently this year.

  3. @Jonha, very good insights. Fluctuating talaga ang stock market kaya hindi ito para sa mga hindi alam ang pinapasok nila. Kaya sa iba, do research and learn the stock market first before investing in stocks!

    @Best business schools, gold is indeed a good investment. Personally, gold and mining companies were a favorite of mine and a few years ago I made some money by investing in Philex Mining (PX). There’s a limited market for actual gold trading in the Philippines, but it has potential in the future.

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